Shutterstock Files Q3 2024 10-Q

TL;DR

Shutterstock's Q3 2024 10-Q is in: financials and operations detailed for the period ending Sept 30.

AI Summary

Shutterstock, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year. Key financial data and operational details for this period are presented, reflecting the company's performance and financial position.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Shutterstock, Inc., crucial for understanding the company's trajectory in the digital content market.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Players & Entities

• Shutterstock, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241029 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share SSTK New York Stock

Filing Documents

• sstk-20240930.htm (10-Q) — 1500KB
• a10-q_2024xq3exhibit311.htm (EX-31.1) — 12KB
• a10-q_2024xq3exhibit312.htm (EX-31.2) — 13KB
• a10-q_2024xq3exhibit32.htm (EX-32) — 10KB
• 0001549346-24-000045.txt ( ) — 7015KB
• sstk-20240930.xsd (EX-101.SCH) — 42KB
• sstk-20240930_cal.xml (EX-101.CAL) — 77KB
• sstk-20240930_def.xml (EX-101.DEF) — 227KB
• sstk-20240930_lab.xml (EX-101.LAB) — 617KB
• sstk-20240930_pre.xml (EX-101.PRE) — 429KB
• sstk-20240930_htm.xml (XML) — 824KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Stockholders' Equity 7 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 47

Signatures

Signatures 49 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, particularly in the discussion under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations." All statements other than statements of historical fact are forward-looking. Examples of forward-looking statements include, but are not limited to, statements regarding guidance, industry prospects, future business, future results of operations or financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services, management strategies and our competitive position. You can identify many forward-looking statements by words such as "may," "will," "would," "should," "could," "expects," "aims," "anticipates," "believes," "estimates," "intends," "plans," "predicts," "projects," "seeks," "potential," "opportunities" and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, our ability to continue to attract and retain customers of, and contributors to, our creative platform; competition in our industry; the effectiveness and efficiency of our marketing efforts; our ability to innovate technologically or develop, market and offer new products and services, or enhance existing technology and products and services; costs related to litigati

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Shutterstock, Inc. Consolidated Balance Sheets (In thousands, except par value amount) (unaudited) September 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 131,393 $ 100,490 Accounts receivable, net of allowance of $ 4,368 and $ 6,335 92,169 91,139 Prepaid expenses and other current assets 53,820 100,944 Total current assets 277,382 292,573 Property and equipment, net 68,623 64,300 Right-of-use assets 14,738 15,395 Intangible assets, net 245,671 184,396 Goodwill 607,382 383,325 Deferred tax assets, net 49,960 24,874 Other assets 85,085 71,152 Total assets $ 1,348,841 $ 1,036,015 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities: Accounts payable $ 15,083 $ 9,108 Accrued expenses 119,401 131,443 Contributor royalties payable 90,572 54,859 Deferred revenue 226,367 203,463 Debt 158,834 30,000 Other current liabilities 53,108 23,513 Total current liabilities 663,365 452,386 Deferred tax liability, net 3,115 4,182 Long-term debt 120,392 — Lease liabilities 24,739 29,404 Other non-current liabilities 14,315 22,949 Total liabilities 825,926 508,921 Commitments and contingencies (Note 14) Stockholders' equity: Common stock, $ 0.01 par value; 200,000 shares authorized; 40,371 and 39,982 shares issued and 34,850 and 35,572 shares outstanding as of September 30, 2024 and December 31, 2023, respectively 403 399 Treasury stock, at cost; 5,521 and 4,410 shares as of September 30, 2024 and December 31, 2023 ( 269,804 ) ( 228,213 ) Additional paid-in capital 453,734 424,229 Accumulated other comprehensive loss ( 9,494 ) ( 11,974 ) Retained earnings 348,076 342,653 Total stockholders' equity 522,915 527,094 Total liabilities and stockholders' equity $ 1,348,841 $ 1,036,015 See Notes to Unaudited Consolidated Financial Statements. 4 Table of Contents Shutterstock, Inc. Consolidated Statements of Operations (In thousands, except for per share data) (unaud

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (1) Summary of Operations and Significant Accounting Policies Summary of Operations Shutterstock, Inc. (the "Company" or "Shutterstock") is a leading global creative platform connecting brands and businesses to high quality content. The Company's platform brings together users and contributors of content by providing readily-searchable content that customers pay to license and by compensating contributors as their content is licensed. Contributors upload their content to the Company's web properties in exchange for royalty payments based on customer download activity. Beyond content, customers also leverage the Company's platform to assist with the entire creative process from ideation through creative execution. Digital content licensed to customers for their creative needs includes images, footage, music, and 3D models (the Company's "Content" offering). Content revenues represent the majority of the Company's business and are supported by the Company's searchable creative platform and driven by the Company's large contributor network. In addition, customers have needs that are beyond traditional content license products and services. These include (i) licenses to metadata associated with the Company's images, footage, music tracks and 3D models through the Company's data offering, (ii) distribution and advertising services from the Company's Giphy business, which consists of GIFs (graphics interchange format visuals) that serve as a critical ingredient in text- and message- based conversations and in contextual advertising settings, (iii) specialized solutions for high-quality content matched with production tools and services through Shutterstock Studios and (iv) other tailored white-glove services (collectively, the Company's "Data, Distribution, and Services" offerings). The Company's Content offering includes: Images - consisting of photographs, vectors and illustrations. Images are typically us

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) adjustments, which include all normal recurring adjustments necessary to fairly state the Company's financial position as of September 30, 2024, and its consolidated results of operations, comprehensive income, stockholders' equity and cash flows for the three and nine months ended September 30, 2024 and 2023. The financial data and the other financial information disclosed in the notes to the financial statements related to these periods are also unaudited. The results of operations for the nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024 or for any other future annual or interim period. These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023 included in the Company's Annual Report on Form 10-K, which was filed with the SEC on February 26, 2024. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial changes in presentation have been made to conform the prior period presentation to current period reporting. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements. Actual results could differ from those estimates. Such estimates include, but are not limited to, the determination of the allowance for doubtful accounts, the volume of expected unused licenses for our subscription-based products, the assessment of recoverability of property and equipment, the fair value of acquired goodwill and intangible assets, the amount of non-cash equity-based compensation, the

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) downloaded over a specific period of time, or, on a transactional basis, whereby a customer pays for individual content licenses at the time of download. The Company also generates revenue from tools available through the Company's platform. For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The standalone selling price is determined based on the price at which the performance obligation is sold separately, or if not observable through past transactions, is estimated taking into account available information including internally approved pricing guidelines and pricing information of comparable products. The Company recognizes revenue upon the satisfaction of performance obligations. The Company recognizes revenue on both its subscription-based and transaction-based products when content is downloaded by a customer, at which time the license is provided. In addition, for subscription-based products in which the Customer obtains an allotted number of digital assets to download, the Company estimates expected unused licenses and recognizes the revenue associated with the unused licenses as digital assets are downloaded and licenses are obtained for such content by the customer during the subscript

View Full Filing

View this 10-Q filing on SEC EDGAR